News and insights from the Verallo team
Overpayment relief claims: Guidance from HMRC
Recent feedback from tax professionals has highlighted a recurring issue: legitimate tax overpayment relief claims being declined due to avoidable technical errors.
In response, HMRC has issued further clarification on what constitutes a valid claim, with the aim of reducing unnecessary rejections and delays.
Overpayment relief exists to allow taxpayers to recover tax that has been paid incorrectly or in excess of what was legally due. However, HMRC has made it clear that even when a claim is substantively correct, failure to meet specific procedural requirements can result in it being refused.
HMRC guidance
- To be accepted, a claim must be submitted in writing and clearly identified as an overpayment relief claim. HMRC expects the submission to specify the relevant tax year, explain how the overpayment arose, and state the amount believed to have been overpaid.
Importantly, claimants must also confirm whether the matter has previously been subject to an appeal, using that term explicitly.
- One of the most critical elements is the declaration is that HMRC requires a signed statement confirming that the information provided is accurate and complete. This declaration must be signed by the taxpayer themselves (or, in the case of companies or partnerships, by the appropriate authorised individual), rather than by an agent acting on their behalf.
HMRC has indicated that many rejected claims fail for two simple reasons:
- Omission of the appeal statement,
- or the declaration being signed by the wrong person
These are technical issues, but they can prevent otherwise valid repayments from being processed.
Get in touch for support
At Verallo, we recognise how frustrating this can be for taxpayers who are simply seeking to recover money they are rightfully owed. Our team can provide guidance and advice on navigating overpayment relief claims, helping you understand your options and avoid common pitfalls.
If you think you may have overpaid tax and want advice on the next steps, get in touch with Verallo’s experts to discuss your situation.